THE BITCOIN HALVING IS APPROACHING
A little more than a year from now, the halving process will cause Bitcoin's inflation to slow down. This is the goal of the effort to halve Bitcoin. By doing this, the inflation rate of Bitcoin will be cut in half, continuing its downward trajectory toward zero. This will ensure that the supply of Bitcoin never exceeds the 21 million threshold. The inflation rate for bitcoin has been decreasing with each halving, and it will continue to do so until it reaches zero. Because Bitcoin's price keeps rising over time, there is an inverse link between them. When halving happens, it typically follows a vigorous rally.
Three times, in November 2012, July 2016, and most recently in April 2020, this has occurred. The price of Bitcoin experiences enormous run-ups and explosions after each of these halvings. When Bitcoin was 12 dollars in 2012, it surged past $1,000 in just one year. In the year and a half following the second halving, the price of Bitcoin had risen to $19,000. A little under $9,000 was the price of Bitcoin also in 2020, and it later reached a record high of $69,000 during the bull run's all-time highs in November 2021. Even if exponential growth is currently slowing down, multipliers are still in operation.
With that high market value, 8x just one year ago is very unheard of in the cryptocurrency world. A more modest 2 to 3x multiple of its gain could be seen when we examine the potential effects of the 2024 halving. The bear market is finished, and 2023 is off to a scorching start, according to a ton of on-chain data and technical indicators.
These persistent macro trends are continuing to drag down this graduate rebound. It will be crucial to monitor how the federal laws, sanctions, and restrictions regarding cryptocurrency are put into practice since they could ultimately affect the halving results and the potential run-up that would occur after the 2024 halving. Speaking about the model that predicts Bitcoin's long-term upward trend, the bulls believe that a reasonable price would be around $55,000 and that it may go above $500,000 with the upcoming post-halving